
A Project Manager's Book of Tools and Techniques
Description
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A practical guide for putting PMBOK concepts to work
A Project Manager's Book of Tools and Techniques is an invaluable resource for students and working professionals alike. Whether you're preparing for the PMP exam or just looking to optimize your project management skills, this book provides detailed explanations for over 100 essential tools described in the Project Management Institute's A Guide to the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition. Going beyond theory and concept to real-world practice, these tools and techniques are the "how" of effective project management; from planning, to implementation, to oversight, and beyond, all phases of the project are represented here to help you more effectively apply critical PMBOK concepts. Comprehensive examples illustrate real-world implementation, and detailed discussion provides expert guidance for both new and experienced project management professionals.
Knowing what to do is much different from knowing how to do it; even perfect understanding of the PMBOK Guide doesn't automatically translate into effective practice. This book is designed to help you bridge that gap and expertly apply current project management standards.
- Delve deeper into the practical tools described in the PMBOK Guide-Sixth Edition
- Follow detailed examples that illustrate effective project management methods
- Master project management applications in preparation for the PMP exam
- Graduate from theory to practice with powerful tools and techniques for success
Concepts are only valuable once they are applied-and then they become a skill set that gets results. The PMBOK Guide is the ultimate authority on project management concepts, but translating those concepts into applicable skills requires a detailed understanding of the tools of the field. A Project Manager's Book of Tools and Techniques is a practical manual for putting essential project management concepts into practice.
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CYNTHIA SNYDER DIONISIO, Project Management Consultant, Issaquah, Washington, USA
Ms. Snyder Dionisio is a well-known project management consultant. She acted as the project manager for the team that created PMI's PMBOK® Guide Sixth Edition, has authored six books related to project management and is the lead instructor for Wiley Efficient Learning's Project Management Professional (PMP)® Exam Review Course. Ms. Snyder Dionisio has experience in training for the corporate, public sector, and academic environment. She is a Project Management Professional (PMP)® certified professional and earned her Master of Business Administration degree from Pepperdine University. She has also earned certifications as an Earned Value Professional (EVP) and is Certified by Microsoft on MS Project 2013.
Content
Acknowledgments vii
Introduction ix
Part 1 Data Gathering 1
1.0 Data Gathering Techniques 2
1.1 Benchmarking 3
1.2 Brainstorming 6
1.3 Check Sheets 8
1.4 Checklists 10
1.5 Focus Groups 12
1.6 Statistical Sampling 14
Part 2 Data Analysis 17
2.0 Data Analysis Techniques 18
2.1 Alternatives Analysis 19
2.2 Cost Benefi t Analysis 24
2.3 Cost of Quality 27
2.4 Decision Tree 31
2.5 Earned Value Analysis 36
2.6 Infl uence Diagrams 41
2.7 Make-or-Buy Analysis 44
2.8 Performance Index 46
2.9 Regression Analysis 48
2.10 Reserve Analysis 51
2.11 Root Cause Analysis 55
2.12 Sensitivity Analysis 58
2.13 Stakeholder Analysis 63
2.14 SWOT Analysis 67
2.15 Technical Performance Analysis 70
2.16 Variance Analysis 72
2.17 What-If Analysis 74
Part 3 Data Representation 77
3.0 Data Representation Techniques 78
3.1 Cause-and-Effect Diagram 79
3.2 Control Charts 82
3.3 Flowcharts 87
3.4 Histograms 90
3.5 Logical Data Model 93
3.6 Mind Mapping 96
3.7 Probability and Impact Matrix 98
3.8 Resource Breakdown Structure 101
3.9 Responsibility Assignment Matrix 103
3.10 Scatter Diagrams 106
3.11 Stakeholder Mapping 108
Part 4 Estimating 111
4.0 Estimating Techniques 112
4.1 Analogous Estimating 113
4.2 Bottom-Up Estimating 116
4.3 Estimate at Completion 119
4.4 Estimate to Complete 123
4.5 Parametric Estimating 126
4.6 To-Complete Performance Index 128
4.7 Three-Point Estimating 131
4.8 Variance at Completion 134
Part 5 Interpersonal and Team Skills 137
5.0 Interpersonal and Team Skills 138
5.1 Confl ict Management 139
5.2 Decision Making 145
5.3 Nominal Group Technique 151
5.4 Problem Solving 153
Part 6 Other Techniques 157
6.0 Other Techniques 158
6.1 Context Diagram 159
6.2 Critical Path Method 161
6.3 Funding Limit Reconciliation 170
6.4 Inspection 172
6.5 Leads and Lags 174
6.6 Precedence Diagramming Method 177
6.7 Prompt Lists 181
6.8 Prototypes 184
6.9 Resource Optimization 186
6.10 Rolling-Wave Planning 189
6.11 Schedule Compression 192
Appendix: Case Study Scenarios 197
Index 203
2.1 ALTERNATIVES ANALYSIS
WHAT IT IS
Alternatives analysis is a technique used to evaluate and select options or approaches to execute and perform project work. An alternatives analysis can be used at a high level; or you can apply a more rigorous approach that incorporates a matrix that identifies rating criteria and weighting factors. This technique can be used in several processes and in a wide range of industries.
HOW TO USE IT
The steps below describe how to conduct an alternatives analysis using a matrix to weight evaluation criteria. Use the steps below as a guideline. Tailor the steps as necessary to work within your environment. For example, you can apply this technique without weighting the evaluation criteria, in which case you would omit Step 3.2.
- Identify the problem or decision you are evaluating. For more information about decision-making, refer to Section 5.2. For more information about problem solving, refer to Section 5.4.
- Define Solution Requirements. Often the Solution Requirements can be extracted from Requirements documentation, the Statement of Work, the Scope Statement, or other project documents. For information technology (IT) projects, "Use Cases" can also be used to identify the Solution Requirements.
- Define Evaluation Criteria and Weightings. The relevant stakeholders should provide input on the criteria they need in a solution or outcome. They should also provide weight values for each criterion. The project manager or business analyst often facilitates this process. The following steps are used to define and weight the selection criteria.
- Identify the selection criteria.
- Develop a "weighted value" for each criterion. It is a best practice for all weights to add up to 100 percent, but this is not mandatory.
- Define the scoring algorithms to determine how effectively each alternative meets the selection criteria. For example, if low cost of ownership is a selection criterion, define how you would rate alternatives on this criterion on a scale of 1 to 5, with 1 being the highest cost option and 5 being the lowest cost option.
- Create a Scoring Matrix with a space for alternatives on one axis and the criteria and weighting on the other axis.
- Identify Options and Conduct Market Research. To conduct market research, you can send out a Request for Information (RFI), hold meetings with vendors, perform Internet research, or talk with consultants.
- Conduct Initial Assessment, Score and Evaluate, and Eliminate Options. The initial assessment can be used to narrow the field to the final one or two options, or it may provide you with the best solution, in which case you skip the next step.
- Conduct a Cost Benefit Analysis with Risk Adjusted Costs to Eliminate More Options. This step is used to evaluate the highest scoring options considering the various risks that each option contains. Depending on the size of the investment, it may be appropriate to conduct an extensive risk analysis on the potential solutions before finalizing a recommendation.
- Recommend Solution. The solution that scores the highest using the selection criteria and weighting, and has an acceptable risk profile, is presented to the stakeholder who has the authority to make the final decision. Sometimes this is the project manager, sometimes it is the sponsor or customer. The backup documentation and a summary of the process should be included with the recommendation.
The following examples demonstrate a relatively simple use of alternatives analysis, followed by a more rigorous example that incorporates weighted criteria to analyze the options.
Evaluating Time, Cost, and Resource Constraints
Scenario: You are managing a project to develop a new company intranet site.
You are analyzing whether to use in-house resources or outsource for higher-skilled resources that cost more per hour, and can accomplish the work faster. The relative importance of the schedule constraints, cost constraints, and resource availability are the solution requirements.
Option 1 assumes you have a team member with adequate skills who can accomplish a task in 80 hours. Her hourly rate is $45.
Option 2 assumes you can outsource the work and use a highly skilled resource that will only need 65 hours to accomplish the work. The higher-skilled resource has an hourly rate of $60.
By multiplying the rate times the duration you determine the cost of the in-house resource is $3,600. The cost of the outsourced, higher-skilled resource is $3,900.
If your solution requirements state that low cost is a higher priority than the schedule, or if you prefer to keep the work in-house, you should go with Option 1. If time is of the essence and you have room in the budget, you should go with Option 2.
Selecting a Cafeteria Management Service
Scenario: You are the project manager for a project to implement a childcare facility for your organization's employees.
This example focuses on selecting a vendor to provide the food service for the Childcare Center cafeteria. Weighted solution (evaluation) criteria are used to evaluate vendors against a set of requirements for the cafeteria services.
- Define Solution Requirements. In this example, the requirements are:
- The service provider should have food options, with a preference toward fresh fruits and vegetables that are locally sourced.
- A reliable vendor, as determined by references.
- Pricing that is consistent with the market. Should be able to provide a healthy lunch for less than $5.
- Define Evaluation Criteria and Weightings.
The selection criteria and weights are as follows:
- Healthy food options: 50 percent
- Locally sourced where possible: 15 percent
- Good customer feedback: 25 percent
- Competitive pricing: 10 percent
The scoring algorithms are:
Healthy Food 5 = 75% of the menu includes fruits, vegetables, grains, legumes, and lean meat. 25% or less is frozen or processed.
4 = 66-74% of the menu includes fruits, vegetables, grains, legumes, and lean meat. 33% or less is frozen or processed.
3 = 50-65% of the menu includes fruits, vegetables, grains, legumes, and lean meat. 50% is frozen or processed.
2 = Most of the menu incorporates fried, frozen, or processed foods.
1 = Limited fresh options. Almost all food is fried, frozen, or processed. Locally Sourced 5 = More than 75% is locally sourced within 100 miles.
4 = 66-74% is locally sourced within 100 miles.
3 = 50-65% is locally sourced within 100 miles.
2 = Most of the food is transported from greater than 100 miles.
1 = Almost all the food is transported from greater than 100 miles. Good Customer Feedback 5 = 5 out of 5 references report they are happy with the vendor and would contract with them again.
4 = 4 out of 5 references report they are happy with the vendor and would contract with them again.
3 = 3 out of 5 references report they are happy with the vendor and would contract with them again.
2 = 2 out of 5 references report they are happy with the vendor and would contract with them again.
1 = 1 out of 5 references reports he is happy with the vendor and would contract with them again. Price Lowest average price
Within 5% of lowest average price
Within 10% of lowest average price
Within 15% of lowest average price
Greater than 15% higher than lowest average priceCreate a Scoring Matrix
Vendor Criterion Weight Rating Score Rating Score Rating Score Healthy .50 Locally Sourced .15 Customer Feedback .25 Price .10 Total 1.0 - Identify Options and Conduct Market Research. For this project you survey local businesses that provide onsite cafeterias. You find some national brands and some local vendors.
- Conduct Initial Assessment, Score and Evaluate, and Eliminate Options. There are three vendors that respond to your request for proposal. You evaluate the proposals and score them based on the criteria and scoring algorithm. Vendor Criterion National Foods Corp Jodi's Kitchen Organic...
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